The Monetary Authority of Singapore’s (MAS) Total Debt Servicing Ratio (TDSR) threshold of 60 percent is only the beginning as further policy-tightening is expected soon, said research agency Nomura.
According to the firm, while the latest measures are expected to have little effect, the slew of regulations introduced so far reflects the government’s ongoing efforts to slow down property price increases.
Recently, MAS stated that the threshold allows borrowers to “familiarise themselves with the framework”. However, the central bank will continue to “monitor and review the 60 percent threshold over time, with a view to further encourage financial prudence”, reports said.
“The statement itself appears to suggest that the 60 percent threshold is likely to persist beyond the short-term and that there is room for further tightening,” Nomura added.
Nikki De Guzman, Junior Reporter at PropertyGuru, wrote this story. To contact her about this or other stories email nikki@propertyguru.com.sg
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